Khuwaylid Capital: Exploring SME finance in Francophone West Africa
Small Foundation is pleased to announce our support for Khuwaylid Capital, a Senegal-based fund manager developing an Islamic finance–aligned investment vehicle for small and medium-sized enterprises (SMEs) in Francophone West Africa.
Khuwaylid represents a new generation of African fund managers designing context-driven solutions to the “missing middle” in SME finance. By providing catalytic capital to early-stage enterprises, the fund seeks to stimulate job creation, deepen financial inclusion and contribute to systems transformation.
The missing middle refers to early-stage enterprises that are too large for microfinance but too early stage for conventional private equity, leaving them underserved by existing financial structures. Like many secondary markets across the continent, Senegal is home to a growing number of such businesses, which often provide essential services and livelihoods in rural areas.
Khuwaylid is launching a locally domiciled, evergreen fund to broaden access to finance for these enterprises. Led by Diago Dieye, whose experience spans investment and inclusive finance, the fund will focus on sectors such as agribusiness, healthcare, and education, where the potential for rural impact is strongest.
It is a privilege to count Small Foundation as our first institutional investor. We are impressed by their forward-thinking approach to closing the SME funding gap through innovative, locally grounded solutions, particularly in underserved regions, sectors, and communities. Their understanding of the SME financing landscape in sub-Saharan Africa adds meaningful value to the ecosystem. We are grateful to partner with their GP Working Capital Facility and are committed to using it effectively to expand access to capital for SMEs in agribusiness, healthcare, and education in Senegal.
Diago Dieye, Khuwaylid Capital
Small Foundation is supporting Khuwaylid through our GP Working Capital Facility which helps emerging fund managers to navigate the long fundraising journey. This reflects our commitment to mobilising local capital and strengthening financial ecosystems for rural and early-stage enterprises over the long term.
By working with Khuwaylid, we hope to learn more about the opportunities and challenges of financing SMEs in francophone Africa through innovative, locally grounded approaches.
